--- title: "Guotai Junan: Under the resonance of supply and demand, traditional industries welcome opportunities for product innovation, optimistic about the innovation trend in beauty and personal care" type: "News" locale: "en" url: "https://longbridge.com/en/news/234163124.md" description: "Guotai Junan released a research report pointing out that the traditional consumer industry is accelerating product iteration under the resonance of supply and demand, especially in the beauty and personal care sector. As basic functionality reaches its peak, future innovations will focus on emotional and technological attributes. It is recommended to pay attention to personal care sector companies like RYC and Dencare, as well as high-end domestic brands and multi-brand expansion companies in the beauty sector. Overall, the trend of new product innovation in old categories is worth looking forward to" datetime: "2025-04-02T06:11:04.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/234163124.md) - [en](https://longbridge.com/en/news/234163124.md) - [zh-HK](https://longbridge.com/zh-HK/news/234163124.md) generator: "portal-rs" --- # Guotai Junan: Under the resonance of supply and demand, traditional industries welcome opportunities for product innovation, optimistic about the innovation trend in beauty and personal care According to the Zhitong Finance APP, Guotai Junan has released a research report stating that the traditional consumer industry is accelerating product iteration and upgrading under the resonance of supply and demand. Basic functionality has been maximized, and in the future, with relatively minor functional differences, product innovation around emotional and technological attributes will be an important direction, truly creating a phenomenon where supply creates demand. The firm is optimistic about the trend of new product breakthroughs in old categories such as beauty and personal care. In the personal care sector, it recommends companies like RYC and Dencare that leverage new channels to support product innovation; in the beauty sector, ingredient innovation and emotional value in niche markets are expected to see high growth. ## Guotai Junan's main viewpoints are as follows: **Optimistic about the innovation trend of new products in old categories of beauty and personal care** 1. Personal care sector: Recommends RYC, Dencare, Runben Co., and Lafang Family; 2) Beauty sector: Ingredient innovation and emotional value in niche markets are expected to see high growth, recommending brand-driven high-end domestic products like Mao Ge Ping, restructuring collagen giants like Juzhi Biotechnology, Jinbo Biotechnology, and Marubi Co., as well as multi-brand expansions like Shangmei Co., Proya, and Shanghai Jahwa. **Supply and demand resonance, accelerated product iteration** Around 2019, we saw the emergence of new channels and new categories, with new consumption developing rapidly, showing a trend of spreading like wildfire. However, it later entered a period of stagnation, with innovation in new consumer categories slowing down; meanwhile, product innovation in old industries or old companies has shown signs of acceleration. This indicates that the categories that can be developed are limited, and the difficulty of new categories emerging is continuously increasing. The innovation and upgrading of old categories, such as segmentation, efficacy, cultural and emotional premium, will be key directions in the future. On the demand side, residents' income levels continue to rise, with consumption upgrading and stratification coexisting, and the demand for distinctive products continues to increase under the greatly enriched basic material supply; on the supply side, the competitiveness of Chinese enterprises continues to improve, with innovation capabilities constantly enhancing, especially in the application of new technologies and the enhancement of aesthetic culture and emotional attributes. **New sprouts from old trees, new products in old categories** China has experienced a long period of rapid economic growth, and residents' material needs have largely been met, with the utility of purely material aspects continuously declining. At the same time, some early brands and products have become relatively outdated, making it difficult to meet the segmented and personalized needs of the new generation of consumers. Products must significantly improve in quality, differentiation, and emotional consumption to have a market. New media channels such as social media and content e-commerce have accelerated the diffusion of new products. Basic functionality has been maximized, and in the future, with relatively minor functional differences, product innovation around emotional and technological attributes will be an important direction, truly creating a phenomenon where supply creates demand. For example, old shops like Huangjin, Zhanjia (RYC), Lengsuanying (Dencare), and Motong Nezha are not new industries, but these companies have achieved breakthroughs through innovation, with the iteration of old products accelerating under the continuous enhancement of R&D manufacturing levels and emotional cultural added value. **Focus on product transformation opportunities in traditional industries such as personal care, health products, beauty, snacks, gold and jewelry, and toys** In the past, the speed of product changes in traditional categories was relatively slow, and leading companies established competitive advantages through deep distribution capabilities, responding slowly to new demands and new channels in the industry. This has given new brands the opportunity to leverage sharper insights for product innovation, achieving rapid market share growth with product innovation as the core and channel leverage as a supplement Specifically, in the personal care category, Zhanjia utilizes fragrance differentiation to break into the clothing care market, Lengsuanling launched an anti-allergy toothpaste, and Ziyoudian introduced probiotic sanitary pads. In the health supplement sector, Feicui's ergothioneine ingredient demonstrates strong efficacy. In the beauty products category, the restructuring of collagen ingredients drives high growth for many domestic products, while Mao Ge Ping's cultural output combined with service experience creates a premium. Innovations in snacks include quail eggs and vegetarian tripe, while traditional gold and diamond craftsmanship from old jewelry stores forms a strong mental association. The toy category, including trendy toys like Pop Mart, has also achieved rapid growth, becoming a typical representative of new consumption. **Risk Warning:** New product performance may fall short of expectations, industry competition may intensify, and consumer spending power may weaken ### Related Stocks - [003010.CN](https://longbridge.com/en/quote/003010.CN.md) - [001328.CN](https://longbridge.com/en/quote/001328.CN.md) - [603630.CN](https://longbridge.com/en/quote/603630.CN.md) - [09992.HK](https://longbridge.com/en/quote/09992.HK.md) - [603605.CN](https://longbridge.com/en/quote/603605.CN.md) - [06181.HK](https://longbridge.com/en/quote/06181.HK.md) - [603983.CN](https://longbridge.com/en/quote/603983.CN.md) - [600315.CN](https://longbridge.com/en/quote/600315.CN.md) - [02611.HK](https://longbridge.com/en/quote/02611.HK.md) ## Related News & Research - [Think Medicare Advantage provides better care for chronic conditions? 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